Trader Joe, a leading decentralized exchange (DEX) on Avalanche, has submitted a $1.83 million grant proposal to Arbitrum DAO, the governance body of the Arbitrum One protocol. The proposal aims to provide liquidity incentives for users who trade on Trader Joe using the Arbitrum One network, which is a layer-2 scaling solution for Ethereum.
Trader Joe has submitted its short-term incentive proposal to the Arbitrum DAO 💙
Trader Joe is committed and aims to further support native, multi-chain, and builders that have yet to deploy or launch on #Arbitrum.
The proposed grant aims to foster deep and highly efficient… pic.twitter.com/njfQilB59V
— Trader Joe (@TraderJoe_xyz) September 25, 2023
According to the proposal, Trader Joe plans to use the grant funds to launch a six-month campaign that will reward users with ARB tokens for providing liquidity and trading on Trader Joe Arbitrum pools.
Trader Joe Takes Massive Step Towards the Future
The campaign is expected to attract more users and volume to both Trader Joe and Arbitrum One, as well as increase the interoperability and composability of the decentralized finance (DeFi) ecosystem.
Trader Joe is one of the most popular DEXes on Avalanche, with over $1 billion in total value locked (TVL) and over 200,000 unique users. The DEX offers fast and low-cost transactions, as well as a variety of features such as lending, borrowing, farming, and staking.
Trader Joe also supports cross-chain bridges that allow users to transfer assets between Avalanche and other networks such as Ethereum, Binance Smart Chain, and Polygon.
Arbitrum One is a layer-2 scaling solution that aims to improve the scalability, security, and decentralization of Ethereum. It uses optimistic rollups, a technique that bundles transactions on a sidechain and periodically submits them to the main chain.
This reduces the gas fees and congestion on Ethereum while preserving its security guarantees. Arbitrum One also supports smart contracts and allows developers to deploy any Ethereum-compatible application on its network.
The grant proposal by Trader Joe is currently under review by the Arbitrum DAO, which consists of ARB token holders who can vote on various proposals related to the development and governance of the Arbitrum One protocol.
If approved, the proposal will mark a significant milestone for Trader Joe expansion efforts, as well as a boost to the growth and adoption of Arbitrum One.